- With mortgage rates remaining high and looking unlikely to drop much anytime soon, the housing market outlook is quickly deteriorating. Moody’s Analytics chief economist Mark Zandi said he thinks a “red flare” is more appropriate for housing, just weeks after he sent off a “yellow flare.” Unless mortgage rates come down substantially, home sales, homebuilding and prices will slump, he warned.
The housing market is getting so weak that it’s poised to become a significant drag on overall economic growth, according to Moody’s Analytics chief economist Mark Zandi.
